The document summarizes the incentives offered by the Singapore government during COVID-19, including two stimulus packages totaling $52.4 billion. The Unity Budget provided $4 billion in short-term support for businesses, including wage subsidies, tax rebates, and SME loans. The larger Resilience Budget provided $48.4 billion, including expanded loan programs, support for aviation, tourism, and F&B sectors, cash payments for lower-income individuals, and training subsidies for self-employed workers. It also outlined tax deferrals and property tax rebates for businesses.

1. Overview of Incentives offered by
Singapore during COVID-19
Dr. CA. Nabeel Ahmed
B.com, ACA, CMA, AICWA, AIA, MBA,
Ph.D.

2. Legends used in the Presentation
IRAS Inland Revenue Authority of Singapore
S$ Singaporean dollar
PTR Property Tax Rebate
SME Small and Medium Enterprises

3. Introduction
The COVID-19 pandemic has distorted the economic order of many countries – and
Singapore is also one of the affected countries, being faced with recession and several
sectors being affected.
The responsiveness of the Singaporean Government to the COVID-19 Pandemic in the
economic stimulus packages, programmes and other incentives has been analysed in
this Webinar.
Crucial measures like deferment of taxes, tax rebates, and loan schemes, support to
low-income workers and assistance to specific sectors like tourism have been
undertaken.
Apart from this, financial assistance to Singaporean households and flexibility on fees and
loans have been enforced.

4. Ist Stimulus – Unity Budget 2020 (S$4)
On February 18, 2020, Singapore announced its 2020 budget (named the Unity Budget) which focused on
providing short-term support for businesses and sectors impacted by the Covid-19 outbreak .
The Government also targets technology, innovation, and entrepreneurship as particular areas of growth,
with a vision to transform Singapore into a ‘Global-Asia node of technology, enterprise, and innovation’.
The Government also provides support in the form of tax rebates and loans for SMEs.

5. Unity Budget - Features
The Stabilisation and Support Package of S$4b provides necessary short-term support to
businesses to improve their cash flow position and to keep local workers in employment.
MAINFEATURES
Employers will receive a 8% cash grant on the gross monthly wages of each local employee
for three months, subject to a monthly wage cap of S$3,600/employee.
Enhances the Wage Credit Scheme –The Government will raise the co-funding level to 15
percent for 2020 (from 10 percent) as well as the monthly wage ceiling to S$5,000 .
Corporate income tax rebate for the financial year at a rate of 25 percent and capped at
S$15,000 per company.
The government will raise the maximum loan quantum from S$300,000 to S$600,000 and
increase the risk-share on these loans from the current 50-70 percent level to 80 percent
to support SMEs.

6. Unity Budget – Direct Aid to impacted
sectors
Crucial areas of the economy such as Tourism, aviation, retail, food services and point-to-
point transport services have been identified that will require direct aid.
Within the Tourism sector, a property tax rebate of up to 30 per cent for the year of 2020
has been granted along with licence fee waivers to Hotels and travel agents .
International cruise and regional ferry terminals can receive up to a 15 per cent property
tax rebate, while the integrated resorts will receive up to a 10 per cent rebate.
Measures to aid the aviation sector took the form of the Aviation Sector Assistance
Package, co-funded by the Government, the Civil Aviation Authority of Singapore, which
aims to help defray business costs and protect jobs.
The National Environment Agency(NEA) will provide a full month's rental waiver to
stallholders in NEA-managed hawker centres and half a month rental waiver to its
commercial tenants.

7. Unity Budget - Transformation and
growth package
To enable Singapore to grow and transform its economy, the government has prepared S$8.3
billion in funding over the next three years. The government will focus on three main areas:
MAINFEATURES
The government aims to develop and expand its network of economic
linkages through new Free Trade Agreements and Double tax agreements
with international partners.
Deepening enterprise capabilities by adopting digitalization, new innovation,
and accessing new markets overseas.
Developing local human resources through the SkillsFuture program.
The program will
- Assist individuals in gaining new skills (SkillsFuture),
- Enhance the role of businesses in developing their staff (SkillsFuture
Enterprise), and
- Support mid-career workers to help them stay employed (SkillsFuture Mid-
Career).

8. IInd Stimulus –The Resilience Budget
(S$48.4 Billion )
On March 26, 2020, the Singaporean Government launched its second stimulus package to counter the
economic fallout of the COVID-19 pandemic.
The budget aims to support local businesses through the deferment of taxes, tax rebates, and loan
schemes, as well as supporting low-income workers and self-employed persons through new training
programs and cash handouts.

9. Resilience Budget - Features
The budget aims to support local businesses through the deferment of taxes, tax rebates, and
loan schemes, as well as supporting low-income workers and self-employed persons through
new training programs and cash handouts.
MAINFEATURES
Introduces Enterprise Financing Scheme (EFS) - Trade Loan – Maximum loan
quantum raised to S$10 million and Government's risk-share upped to 80 per
cent.
Enhancement of Loan Insurance Scheme (LIS) – Subsidies to businesses for
loan insurance premiums raised from 50 per cent to 80 per cent.
Enhancement of Temporary Bridging Loan Programme (TBLP) – Expanded
from the tourism sector to all enterprises, maximum support raised to S$5
million, from S$1 million.
Loan quantum for SMEs has been further increased to S$1 million There is
also an additional S$20 billion in loan capital.

10. Resilience Budget – Direct Aid to
impacted sectors
The Government will introduce a S$350 million aviation support package in the form of
rebates on landing and parking charges and rental relief for airlines and cargo agents.
For every local aviation worker in employment, the Government will provide a 75 percent
wage offset for the first S$4,600 in monthly wages through the Jobs Support Scheme.
The tourism industry will benefit from the Jobs Support Scheme, which is open for
licensed hotels, travel agencies, tourist attractions, and purpose-built MICE operators,
among others. There is also an additional S$90 million in funding for the industry.
Firms in the food and beverages (F&B) industry are eligible to apply for the Jobs Support
Scheme. For this industry, the government will provide a 50 percent wage offset for the
first S$4,600 in monthly wages.
The National Environmental Agency (NEA) will give stallholders in hawker centres three
months of rental waiver, an increase from the one month issued in the Unity Budget.

11. Resilience Budget - Supporting workers
and protecting jobs
The Government will raise the percentage of co-funding of wages from eight to 25
percent. The monthly wage ceiling allowance will also be raised from S$3,600 to
S$4,600.
Lower-income Singaporean workers will receive a S$3,000 (US$2,000) one-off cash
payment.
The Government will freeze all government fees and charges for one year, starting from April
1, 2020, to March 31, 2021.
Loan repayment and interest charges for student loans will be suspended for one year and late
payment on mortgage arrears are to be suspended for three months.
Over one-third of the budget is dedicated to protecting the livelihood of workers.
Self-employed persons will be provided with S$1,000 per month for the next nine
months. The Government will provide subsidies, which includes covering up to 90
percent of fees for any self-employed persons looking to engage in reskilling or training
programs.

12. Boost to Digital Economy
Launch of GoBusiness Licensing Portal : A pro-enterprise digitalisation effort to enable a simpler, faster
and better process for businesses to apply for licenses, permits, and certificates from the government.
This is jointly developed by the Ministry of Trade & Industry (MTI), Smart Nation and Digital Government
Office (SNDGO) and GovTech.
The Digital Resilience Bonus (DRB) aims to uplift the digital capabilities of a broad base of enterprises.
A bonus of S$300 per month over 5 months will be given to stall holders in hawker centers, wet
markets, coffee shops and industrial canteens, who adopt the e-payment solution.
Additional monetary assistance of up to S$10,000 to help businesses in Food services and Retail
sectors digitalise with e-invoicing and e-commerce solutions.

13. Enterprise Singapore
This is a Government agency championing enterprise development. Below are some Financial Assistance /
Grants for Local companies.
• Productivity Solutions Grant (PSG) –Provided to Companies who want to enhance
business by adoption of technology with pre-qualified IT solutions and equipment to
enhance productivity.
• Market Readiness Assistance (MRA) Grant – Provided to SMEs to give an
international boost with the Market Readiness Assistance (MRA) grant to help take the
business overseas.
Enterprise Development Grant (EDG) – Assisting companies that are undertaking
deeper transformation in business upgrading, innovation and internationalisation.
• International Co-Innovation Programmes – For companies to internationalise by
tapping into funding programmes for cross-border collaboration projects on technology
development and co-innovation.

14. Tax developments in response to
COVID-19
MAINFEATURES
Companies and self-employed persons will enjoy automatic deferment of
income tax payment for 3 months, between April to June 2020.
Employees with income tax payments due in May to July 2020 may apply to
defer their individual income tax payments for 3 months.
An automatic extension of deadlines for tax filing for individuals and
businesses
The air passages provided by employers to evacuate their overseas-based
employees and the subsequent flight of sending them back to the overseas
work location shall not be taxable to the employee.
The Inland Revenue Authority of Singapore will allow certain expenses
relating to working from home ( e.g. Utility expenses) as deduction against
employment income.
100% PTR for qualifying commercial properties such as hotels, serviced
apartments, tourist attractions; 60% PTR for Integrated resorts; 30% PTR for
all other non-residential properties such as industrial properties, offices.

15. Thank You!
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